April 17, 2000

To:    District and Municipal Courts, Michigan Municipal League, County Administrators, Controllers,
         Managers, County Clerks and County Treasurers

From:    Richard L. Baldermann, CPA, CGFM
             Administrator, Local Audit and Finance Division
             Bureau of Local Government Services

RE:    Convicted Drunk Driver Assessment, Remitting Court Collected State Fees and
          Form 295

Public Act 345 of 1998 was signed into law October 16, 1998 and became effective October 1, 1999. The Act necessitates changes to court form number 295 (7-98) entitled "Remittance Advice From District or Municipal Court." The Act allows a court to order a person convicted of certain alcohol or drug-related driving offenses to reimburse the State or a local unit of government (a city, village, township, or county) for the expenses incurred in relationship to that incident. Also, the court order may include expenses for an emergency response and expenses for prosecuting the person. The act applies to offenses involving the operation of a motor vehicle, snowmobile, off-road vehicle (ORV), aircraft, vessel or locomotive engine.

The expenses for which reimbursement may be ordered under Public Act 345 of 1998 (MCL 769.1f) include the following:

• Salaries or wages, including overtime pay of law enforcement personnel;
• The time spent responding to and investigating the incident;
• Arresting the person convicted, and processing the person after the arrest;
• Preparing reports on the incident, including collecting and analyzing evidence; and
• Determining the presence of and identifying alcohol content/control substances in the blood.

If police, fire department, or EMS personnel from more than one unit of government incurred reimbursable expenses, the court may order the person convicted to reimburse each unit of government for its expenses. The reimbursement must be paid to the clerk of the court, who must transmit the appropriate amount to the unit or units of government named in the reimbursement order.

If the convicted person was placed on probation or paroled, any reimbursement that was ordered would have to be a condition of the probation or parole. If the person failed to comply with the reimbursement order, and had not made a good faith effort to do so, parole or probation could be revoked. When determining whether to revoke probation or parole, the court or parole board would have to consider the person's employment status, earning ability, number of dependents, and financial resources. The court must consider the willfulness of the failure to pay, and other special circumstances that could have a bearing on his or her ability to pay. A person could not be imprisoned, jailed, or incarcerated for failure to make a reimbursement unless the court determined that he or she had the resources to pay and had not made a good faith effort to do so.

ACCOUNTING CLASSIFICATION OF COLLECTIONS

How to account for amounts due to State Police to reimburse for allowable expenses under Public Act 345 of 1998?

Courts must revise their receipt classification procedure to accumulate collections for court ordered reimbursements assessed to drunk drivers convicted under Public Act 345 of 1998 (MCL 769.1f). The Circuit and District Court Control Unit will have to add a general ledger account within the Trust and Agency Fund. The new account is titled "Convicted Drunk Driver Assessment-Due State Police" number 228.47. This account represents the amount due to the Michigan State Police for expenses incurred related to Public Act 345 of 1998. Sub-accounts for the circuit and district courts should be established to separately account for collections and remittances of court reimbursements paid.

Reporting of amount due to the State Police on the Court Transmittal Forms to the State.

The total amount collected during the month accumulated in Trust and Agency Fund account numbers 228.47 "Convicted Drunk Driver Assessment-Due State Police" should be deposited with the State of Michigan. The amount should be recorded on line 10 of revised court transmittal form 295 if collected in district or municipal court. If the reimbursement was made in circuit court, the total amount collected for the month goes on line 10 of revised court transmittal form 57.

How to account for amounts due to other local units to reimburse for allowable expenses under Public Act 345 of 1998?

The amount due to the local unit of government for its expenses should be placed into the trust and agency fund using the following account depending on the court order

 221  Due to Cities
222  Due to Counties
226  Due to Townships
227  Due to Villages

These accounts should be used to record amounts received by the local unit, in accordance with a court order, for subsequent payment to recipients specified in the court order. A detailed ledger must be maintained showing the account activity for each case or court order.

Civil Infractions committed by juveniles under 17 years of age per MCL 712A.2

Please note that changes were also made to both court forms for traffic civil infractions committed by juveniles under 17 years of age per MCL 712A.2. The family division of circuit court of the county where the violation is alleged to have occurred has jurisdiction over the proceedings and shall proceed to hear and dispose of the case as provided by MCL 712A.1 to 712A.28. The statute under MCL 712A.2e(1) allows the family division of the circuit court to enter into an agreement with any or all district courts or municipal courts within the circuit court's jurisdiction to waive jurisdiction over any or all cases involving juveniles alleged to have committed traffic civil infractions.

Attached is a copy of the revised court transmittal form 295, which revised form 295 (7-98) and replaced it. The revised form 295 (3-00) must be used when remitting April 2000 collections, due on or before May 20, 2000 and subsequent monthly collections to the State Treasurer and Judges' Retirement System. If your remittance and transmittal form is not mailed on or before the 20^th of the month, subsequent to the month of the collection, daily interest and a $50 penalty may be assessed. This assessment is applicable on the amount due to the Michigan Judges' Retirement System (lines 14 and 15 of form 295 Rev. 3-30). Interest and penalty are authorized by section 304, Public Act 234 of 1992 (MCL 38.2304). Please make copies of the revised form 295 (Rev. 3-00) as necessary for use in subsequent months, and DESTROY your supply of the old form 295 (Rev. 7-98).